Hollywood Bowl Group Plc · LSE:BOWL
Hollywood Bowl — H1 2018 Earnings Presentation
30 slides from Hollywood Bowl's earnings presentation, May 23, 2018
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Slide 3: FY2018 H1 highlights
FY2018 H1 highlights yr Continued execution of the proven growth strategy delivering another strong financial performance +r Yield management initiatives coupled with continued evolution of the customer proposition driving organic growth yr Centre refurbishment and rebrand programme remains on track
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Slide 5: Financial highlights
Financial highlights Revenue (£1 % Group Adjusted EBITDA (£m): +13.4% 114.0 104.8 33.4 | 84.6 29.4 q | I ; | FY2015 FY2016 FY2017 Ht 17 H1 18 FY2015 FY2016 FY2017 H117 H1 18 Normalised Earnings Per Share (pence): +18.1% Group adjusted EBITDA Margin %: +1.2%pts 52.5% 1417, 29.3% 9.34 | 28.0% | 24.3%
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Slide 7: H1 FY2018 revenue
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Slide 9: Income statement
Income statement £m) H1 FY2018 H1 FY2017 Movement Revenue 63.6 58.2 +9.3% Gross profit 54.9 50.3 +9.1% Gross profit% 86.3% 86.4% -0.1%pts Administrative expenses/other income (39.9) (37.4) Operating profit / (loss) 15.0 13.0 +16.1% Operating profit margin % 23.6% 22.3% +1.3%pts Depreciation 5.3 49 A
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Slide 11: Strong cash generation
Strong cash generation hollywood bow! group * Group adjusted operating cash flow of £14.9m (H1 FY2017: 4 Expansionary capex includes 3 refurbishments / £14.1m) rebrands and 2 new centres xs yx Operational cash flow conversion of 71.9% (H1 FY2017: 77.4%) Net cash flow, pre FY2017 final dividend, of £
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Slide 13: Customer led organic growth
1 holl Customer led organic growth pat bowl ye Online revenues up 26% YOY in H1 9.20 y« Mobile transactions now account for 57% of this revenue 8.63 8.70 | 8.72 yx Development roadmap for technology platform ongoing | x Digital advertising programmes have been expanded 8.12 with positive ROIs | x Ta
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Slide 15: Capital deployed driving strong returns
Capital deployed driving strong returns ye Average ROI of 55% for last 11 refurbishments with game volumes up 6.7% vs non invested estate yx LFL sales up 11.5% vs non invested estate xx 5 centres planned to have transformational investment in the second half yx 3 more rebrands planned for the second
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Slide 17: Pins on strings
570 - 950 414 356 310 H1 FY16 H1 FY17 H1 FY18 Pins on strings 1.3% 0.5% 0.3% 3-year payback Expected Trial results 8
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Slide 19: Development of new centres: Dagenham
Development of new centres Dagenham +k Opened October 2017 +k 30k sq. ft. +k 20 lanes yx Secured from landlord having traded as Namco +k Destination leisure park Trading well and in line with expectations since opening +k On track to pay back in under a year Gross capex Landlord contribution Net cap
Slide 20: Dagenham
Slide 21: Development of new centres: Yeovil
Development of new centres Yeovil +r Opened March 2018 +r 59" centre to open +r 23k sq. ft. +r Secured from landlord having traded as MFA jr 18 lanes yr Pins on strings installed +r Trading in line with management expectations Gross capex Landlord contribution Net capex hollywood bowl group £0.90m (
Slide 22: Yeovil
Slide 23: Strong new centre pipeline
Strong new centre pipeline intu® Watford — FY2019 Key anchor in the new intu extension Alongside Cineworld and Debenhams yr Intu extension is 400,000 sq. ft., £180m spend yr Top 20 UK retail destinations yr 20,000 sq. ft. / 14 lanes yr Capex requirement £1.5m Liverpool — FY2020 +r Relocation of exis
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Slide 25: A positive outlook for the Group
hollywood bowl A positive outlook for the Group group yx Another strong set of results with record revenues and profit in line with Board’s expectations yr Solid financial performance of the business across all key metrics xx Deployment of capital into the refurbishment programme on track and contin
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Slide 27: Management
Management are bowl Stephen Burns — Chief Executive Officer Appointment xe Stephen joined the Group as Business Development Director in 2011. He was promoted to Managing Director in 2012 and became Chief Executive Officer in 2014 Skills and experience x Before joining the Group, Stephen worked withi
Slide 28: Revenue notes
(a) Other revenue includes Quasar (3 Centres), ATM income and other miscellaneous sales (b) FY2017 otherwise stated
Slide 29: Balance sheet
Balance sheet (£m) H1 FY2018 H1 FY2017 PPE 41.9 38.6 Intangibles 78.8 79.0 Stock 1.4 1.2 Trade & other receivables 6.6 6.2 Cash 22.0 16.5 Creditors & provisions (30.0) (25.2) Gross debt (29.3) (30.0) Deferred tax (0.6) (2.3) Net assets 90.8 84.0 hollywood bowl group
Slide 30: Non-Executive Directors
Joined the Group in 2016 Audit Committee Chairman Non-Executive Director at Marston’s PLC, Senior Independent Director of the Guardian Media Group Plc and a Non-Executive Director of All3Media Previously Deputy CEO of the David Lloyd Leisure Group, Group Finance Director of National Car Parks, CFO o